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    IronFX Intraday Comment | GBP/USD | 27/11/2015

    • The dollar traded higher against almost all of its G10 peers during the European morning Friday, ranging from 0.20% against EUR to 0.70% against CHF. The greenback was virtually unchanged against JPY and SEK.

    • The British pound came under renewed selling pressure after the 2nd revision of Q3 GDP data confirmed that the UK economy slowed from Q2. Private consumption and government spending continued to offset the very weak trade outlook. Trade was the only component of the GDP data that didn’t provide any support to growth and instead, it has become a heavy drag on growth as the trade deficit almost doubled in Q3. EUR/GBP found some buy orders slightly above the psychological 0.7000 level but the advance stayed limited below our 0.7050 resistance zone. A break above that territory could trigger another leg higher but I would be cautious for further advances due to the prospect of further easing from the ECB at next week’s policy meeting.

    • GBP/USD traded lower during the European morning Friday, breaking below the support (now turned into resistance) barrier of 1.5065 (R1) to reach the next support of 1.5030 (S1), defined by the low of the 6th of November. The short-term bias remains negative in my view and therefore, I would expect a decisive move below 1.5030 (S1) to open the way for the psychological zone of 1.5000 (S2). Our short-term oscillators detect downside speed and amplify the case for further declines. The RSI slid and reached its 30 barrier, while the MACD, already negative, has topped and fallen below its trigger line. Nevertheless, the RSI turned somewhat up after touching its 30 line, which give evidence that a minor corrective bounce could be on the cards before the next negative leg. On the daily chart, I see that the rebound started on the 6th of November was stopped fractionally below the 80-day exponential moving average. Then, the rate tumbled again. As a result, I would keep my view that the medium-term outlook remains cautiously negative.

    • Support: 1.5030 (S1), 1.5000 (S2), 1.4955 (S3)

    • Resistance: 1.5065 (R1), 1.5110 (R2), 1.5155 (R3)

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